The Indian rupee on Thursday fell to its all-time low at 78.32 against the US dollar at the interbank forex market on a strong greenback and frequent foreign fund outflows offsetting the impact of gains from domestic equities. As long as crude oil prices remain above $95 a barrel, the rupee is likely to remain weak.
in the exchange market, Rupee Opened at 78.26 per dollar and continued to weaken until it closed at an all-time low of 78.32 per dollar muted from its previous close.
On the previous day, the rupee had lost 19 paise to close at an all-time low of 78.32 per dollar.
Jatin Trivedi, VP Research Analyst, LKP Securities said, “The rupee traded between 78.20-78.40, closing near 78.30 as dollar was trading neutral with capital. Market Range-bound volatile day kept range-bound moves.”
The Sensex closed at 52,265.72 with a gain of 443.19 points or 0.86%. The Nifty 50 closed at 15,556.65, up 143.35 points or 0.93%.
So far this month, till June 23, FPI has remained on outflow 43,831 crore in equity market – Highest ever sale in 2022 by foreign investors. Overall, in the year, FPI outflows are on the tune of 2,10,986 crore in equity.
“Weakness in rupee may continue as long as crude remains above $95, any break below $95 and lower level of crude will provide strong support to rupee,” Trivedi said.
Today, crude oil prices retreated as investors re-looked at a bearish and fuel demand outlook amid rising interest rates scenario. However, crude oil prices remained above the $100 per barrel level.
Brent crude futures fell $1.47, or 1.3%, to $110.27 by 0949 GMT, having been as low as $108.04 in the prior session, as reported by Reuters. US West Texas Intermediate (WTI) crude futures were down $1.48, or 1.4%, at $104.71 after touching a session low of $102.32.
According to VP Research Analyst, LKP Securities, the range of Rs.
ICICI Direct in its research note today said, “Declining crude oil prices may support the rupee. However, investors will watch the US initial jobless claims data closely as it is expected to fall from 229,000 to 227,000”. “
US Federal Reserve Chairman Jerome Powell has said high rates are painful, but a means for the central bank to slow inflation. He also said that the Fed is not trying to create a recession to reduce inflation, but is fully committed to bringing prices under control, even if doing so threatens an economic slowdown.